Stantec (STN) is a $13.4B E&C company that sees very little recognition but absolutely crushed estimated on its report 11/7. STN has yet to hold the earnings call but looking over the press release can see it posted 7.8% acquisition growth and 6.5% organic growth, STN has record backlog of $7.3 billion, and a robust set of further growth opportunities. Looking at STN’s call in August its industry leading Water business continues to drive growth in critical areas like shoreline protection, wastewater treatment, water security advanced manufacturing, and PFAS. Themes of addressing aging infrastructure and climate change are very prominent in AMP8 with investment to be directed towards replacement of water mains, significantly reducing leaks and harm from storm overflows, and implementing nature-based solutions. STN also has expertise in cancer care facilities and its Buildings business is also a top five player in mission critical and data center facilities, currently working with four of the top five hyperscale data center technology companies. Its  Infrastructure business is seeing enhanced activity related to aging infrastructure, particularly in the US, as funding continues to flow from IIJA with over $460 billion now allocated to over 60,000 projects across the country.

STN is also forming a long weekly bull flag with $86.50 a key breakout level that can send shares well past $100 as weekly RSI is set to clear a downtrend and MACD finally flip bullish.

STN trades 23.7X Earnings, 15X EBITDA and 37.2X FCF and generating very impressive growth with FY24 revenues seen growing 15% with 16.5% EBITDA growth and in FY25 growth rates of 9.5%/12% respectively. STN EBITDA margins of 13.6% are at new highs and screen strong versus peers.